* New Zealand dollar hits highest in more than 2 years
* Commodity-linked currencies gain vs U.S. dollar
* Sterling rises to three-month high
* U.S bipartisan stimulus proposal sinks dollar
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(Adds new comment, updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, Dec 1 (Reuters) - The dollar fell on Tuesday to its lowest in more than 2-1/2 years, as
investor appetite for risk increased on the prospects of further fiscal stimulus from the United States as
well as expectations of a solid global recovery.
News of a proposed COVID bill sank the dollar further, as did the resumption of talks between U.S.
Treasury Secretary Steve Mnuchin and House of Representatives Speaker Nancy Pelosi later on Tuesday about
a stimulus package. The two have not spoken since before the Nov. 3 U.S. election. The proposed relief bill was $908 billion and would fund measures through March 31, including $228
billion in additional paycheck protection funds for hotels, restaurants and other small businesses.
"Risk overall was on today anyway, and overall that has been the story in November and continuing in
December," said John Doyle, vice president of dealing and trading at Tempus, Inc. in Washington.
"Traders are looking for any reason to bid risk up and that comes at the cost of the dollar. When you
get a report that a bipartisan stimulus deal can get done after hopes have been dashed, it's just another
reason to bid risk up and sell the dollar."
Currencies that trade higher in times of risk appetite such as the euro, sterling, as well as the
Australian, New Zealand, and Canadian dollars all rose against the greenback.
The euro and the New Zealand dollar both hit 2-1/2-year highs.
Bitcoin was also on a tear, hitting a record high just under $20,000 BTC=BTSP . The virtual currency
though was last down 3.7% t $18,934.
In midday trading, the dollar index fell 0.6% to 91.361 =USD , hitting 91.263, the lowest since late
April 2018.
The dollar extended losses as well after mixed U.S. economic data showing a rise in construction
spending, but a decline in a manufacturing index. The euro hit a 2-1/2-year high vs dollar above $1.20 and was last up 0.9% at $1.2038.
Sterling climbed to a three-month peak versus the dollar after Times Radio said Brexit trade deal
talks have entered the "tunnel" stage of negotiations. The "tunnel" is a term for an intense final stage
of secretive, make-or-break negotiations. The pound was last up 0.6% at $1.3402 GBP=D3 .
Nagging worries about rising coronavirus cases have not provided the dollar with much safe-haven
support. Speculation is growing that the Federal Reserve will act to support the economy through a tough
winter before vaccinations become available.
The Fed meets to set policy on Dec. 15 and 16.
Fed Chairman Jerome Powell and Treasury's Mnuchin on Tuesday also urged Congress to provide more help
for small businesses amid a surging coronavirus pandemic and concern that relief from a vaccine may not
arrive in time to keep them from failing. nL1N2IH0T4
Powell and Mnuchin testified on the CARES Act, under which Congress made $2 trillion available to the
Treasury as coronavirus aid, a large portion of which was aimed to support the FOMC's lending programs.
The New Zealand dollar hit its highest since June 2018 and was last up 0.7% at US$0.7055 NZD=D3 ,
while
The Canadian dollar CAD=D3 rose against the greenback, which fell 0.4% at C$1.2954, after data
showed Canada's economy grew by 40.5% on an annualized basis in the third quarter, rebounding from a
historic plunge in the second. CAD/
========================================================
Currency bid prices at 12:36PM (1736 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD $91.3120 91.9490 -0.68% +0.00% +91.9640 +91.2630
Euro/Dollar EUR=EBS $1.2045 $1.1923 +1.03% +7.44% +1.2055 +1.1927
Dollar/Yen JPY=D3 104.3550 104.3350 +0.05% -3.89% +104.5750 +104.2050
Euro/Yen EURJPY= 125.69 124.39 +1.05% +3.07% +125.7900 +124.4100
Dollar/Swiss CHF=EBS 0.9000 0.9092 -1.00% -6.98% +0.9087 +0.9000
Sterling/Dollar GBP=D3 1.3413 1.3325 +0.67% +1.14% +1.3440 +1.3316
Dollar/Canadian CAD=D3 1.2949 1.3008 -0.45% -0.32% +1.3008 +1.2944
Aussie/Dollar AUD=D3 0.7359 0.7345 +0.21% +4.90% +0.7373 +0.7342
Euro/Swiss EURCHF= 1.0841 1.0836 +0.05% -0.10% +1.0859 +1.0833
Euro/Sterling EURGBP= 0.8978 0.8952 +0.29% +6.20% +0.9007 +0.8930
NZ NZD=D3 0.7059 0.7010 +0.71% +4.92% +0.7067 +0.7011
Dollar/Dollar
Dollar/Norway NOK=D3 8.8185 8.9025 -0.89% +0.58% +8.9005 +8.8095
Euro/Norway EURNOK= 10.6240 10.5995 +0.23% +7.99% +10.6465 +10.5648
Dollar/Sweden SEK= 8.5002 8.5725 +0.07% -9.06% +8.5793 +8.4842
Euro/Sweden EURSEK= 10.2401 10.2329 +0.07% -2.19% +10.2435 +10.1958